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Solar Energy Potential in Rural Zimbabwe

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Solar Energy Potential in Rural Zimbabwe SOLAR PV POTENTIAL IN RURAL ZIMBABWE ANALYSING NATURAL AND ECONOMICAL POTENTIAL Koen van Kuijk VRIJE UNIVERSITEIT AMSTERDAM November 2012 Vrije Universiteit Amsterdam Master thesis Earth science, Earth and Economics K. van Kuijk Bos en lommerplein 165P 1055 AD Amsterdam [email protected] Supervisors VU: Dr. P. J. H. van Beukering [email protected] Dr. M. Bokhorst [email protected] Institute for Environmental Studies (IVM) Vrije Universiteit De Boelelaan 1087 1081 HV Amsterdam The Netherlands Supervisor internship SNV: Erik Boonstoppel Program Leader Renewable Energy SNV Netherlands Development Organisation Zimbabwe 6 Caithness Road, Eastlee Harare, Zimbabwe [email protected] 2 Solar PV Rural Market Assessment in Zimbabwe Abstract Socioeconomic development in Zimbabwe is reduced by the fact that a majority of the households in rural areas has no access to electricity. Households rely for their energy supply on expensive and unsustainable products like paraffin oil and fire wood. The fact that Zimbabwe has an average annual of 8.3 sun hours per day makes the country suitable for solar energy; one solution for this energy shortage could be the development of a solar energy network in rural Zimbabwe. This research examines the economical and natural potential for solar energy to find out whether there are possibilities to develop a sustainable solar energy sector not based on long-term subsidy programs. Through two different paths, the natural and economic potential of solar energy in rural areas in Zimbabwe is examined. The natural potential of solar energy is derived from sun hours data from the meteorological institute in Zimbabwe using the angstrom analysis. Solar irradiation is calculated into a potential electricity production per square meter. The results are checked with satellite data from the PVGIS program. Two household surveys are conducted to research the economic potential for solar energy. The first survey covers the current energy use of households. The second survey studies willingness to pay for solar products. The economical potential for solar energy is derived by linking WTP and income results to actual market size. The climate in Zimbabwe is suitable for solar energy with an average electricity potential for solar PV of 359 kWh/m2/year. Rural areas in Zimbabwe have a large potential for the development of solar PV market. The majority of the households is capable and willing to pay enough to purchase simple solar products. There is a need for the development of payment schemes to make more advanced solar system affordable for rural households. Furthermore solutions to integrated solar energy into the current energy systems are needed to fully utilize the natural solar PV potential 3 Solar PV Rural Market Assessment in Zimbabwe Acknowledgement This master thesis study was made possible by the support from SNV Zimbabwe, IVM, ILO Zimbabwe and RENEW IS Academy. I would like to thank my external supervisor Erik Boonstoppel at SNV Zimbabwe for his excellent guidance and advice. I would also like to acknowledge the efforts and commitment from my renewable energy colleagues Gladys, Fungai and Chandi that helped me with advice and support within the stimulating work environment of SNV. Thanks to my supervisors Pieter van Beukerink from IVM and Mark Bokhorst from earth sciences. This research could not have been completed without the help of 10 district staff members from ILO conducting the surveys, thanks for their enthusiasm and persistence. 4 Solar PV Rural Market Assessment in Zimbabwe Preface This report is written within the RENEW IS academy, this is a five year (2009-2014) research project investigating energy access and development cooperation in Eastern Africa. It is funded by the Dutch Ministry of Foreign Affairs (DGIS) and is a joint collaboration of IVM (Institute for Environmental Studies, VU University Amsterdam), ECN (Energy research Centre of the Netherlands) and the environment, water, climate and energy department of DGIS. Within this program I did an internship with SNV Netherlands Development Organization in Zimbabwe. SNV in partnership with International Labour Organization (ILO) is investing in value chain development for rural solar PV markets. The intervention seeks to reduce the high transaction costs for solar products and their maintenance in rural areas by approximately 70% through establishing local sales, after-sales and maintenance networks. This will be done by fostering business relations between youth in rural localities and solar companies in towns while creating an environment where financing products are available on the market for affordability of the solar systems and products. ILO would like to create meaningful self- employment opportunities for 180 people between 15-35 years of age in 2013. SNV would like to increase access to renewable energy for rural communities in Zimbabwe (SNV & ILO, 2012). Collaboration between SNV and ILO started with this research to investigate whether there is a natural and economical potential for solar PV in rural areas of Zimbabwe. Does it make sense to invest in a training program for the stimulation of a market based solar energy market based on economical and natural factors? Earth science and economics This study is done within the master Earth science, specialization earth science and economics. This master aims to work within the tension of earth science and economics. Therefore this study will study both; economical feasibility of solar energy and natural potential of solar irradiation. 5 Solar PV Rural Market Assessment in Zimbabwe Abbreviations CV(M): Contingent Valuation (Method) GDP: Gross Domestic Product GEF: Global Environmental Facility IEA: International Energy Agency ILO: International Labor Organization MDC: Movement of Democracy and Change MSD: Meteorological Service Department Zimbabwe PV: Photovoltaic SSA: Sub Sahara Africa UNDP: United Nations Development Program WTP: Willingness to Pay ZANU-PF: Zimbabwe African National Union-Patriotic Front ZESA: Zimbabwe Electricity Supply Authority 6 Solar PV Rural Market Assessment in Zimbabwe Table of contents SOLAR PV POTENTIAL IN RURAL ZIMBABWE ......................................................................... 1 Abstract ................................................................................................................................................................... 3 Acknowledgement .................................................................................................................................................. 4 Preface ...................................................................................................................................................................5 Abbreviations .......................................................................................................................................................... 6 Table of contents .................................................................................................................................................... 7 List of figures ......................................................................................................................................................... 10 List of tables .......................................................................................................................................................... 11 INTRODUCTION .............................................................................................................................. 12 Problem statement ........................................................................................................................................... 12 Research question ............................................................................................................................................ 13 Contents ........................................................................................................................................................... 13 1. BACKGROUND ......................................................................................................................... 14 1.1. Introduction ............................................................................................................................................. 14 1.2. Country Information ................................................................................................................................ 14 1.2.1. Research area .................................................................................................................................. 14 Population ....................................................................................................................................... 14 1.2.3. Economy and politics ...................................................................................................................... 15 1.2.4. Income ............................................................................................................................................. 15 1.2.5. Local climate .................................................................................................................................... 16 1.3. Energy ...................................................................................................................................................... 17 1.3.1. Zimbabwe’s energy use ..................................................................................................................
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